Schedule 13 Change Request for FY Budget Request Cycle. Sup>lemental FY Budget Amendment FY Health.
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1 Family STATE OF COLORADO F) BUDGET REQUEST CYCLE: DEPARTMENT OF HEALTH CARE POLICY AND FINANCING Decision Item FY 2010-li Base Reduction Item FY 2010-li Request Title: lr-ipementatio-i of Famdy Planning Waiver Schedule 13 Change Request for FY Budget Request Cycle I Sup>lemental FY Budget Amendment FY Department: Health Care Policy and F nancing Dept. Approval by: John Bholornew ate: January 25, 2010 Priority Number: BA-iS OSPB Approval:,(A Date: I TotI Decision Total Change Pm ior-yeai Supplemental Revised Base Base Novemnhem I Budget Revised fi olo Base Actual Appmopmiation Request Request Request Reduction Request Amendment Request IColumn 51 Fieid FY FY FY FY2009-l0 FY2O1O-I1 Ft FY2O1O-11 FY2O1O-11 FY2O1O-1I FY2O11-12 Total of All Line Items Total 2526,991,443 2,572,042, , ,500 3,002,816,562 4,206,600 ETE GE 919, ,661, ,112,661,142 1,140, ,140,610, ,610,858 0 GEE 39,251, CF 109,633, , ,097, , ,549, ,549, ) Medical Services CFERF 2631, , ,746,329 2, ,736, , , FE 1 455,765, ,538, ,167 1,505,016, , ,713,150 1,506, , Piemimmins Total 2,526,991, ,042, ,042,638 3,000, ,000,913,062 1,903,500 3,002,816,562 4,206,600 FTE flu GE 919,709, ,661, ,112,661,142 1,140, , ,140,610,858 0 GEE 39,251, CF 109,533, ,097, ,097, ,549, ,549, ,549,563 0 Non-Line Item Request: None 6FF RE 2,631,068 2,746, ,746,329 2, ,736, , , FE 1 455,765,086 1,289,538, ,289,538,167 1,505,016, ,505,016,481 1,713,150 1,506,729,631 3,785,940 Lettemnote Revised Text: Of this amount amount, $ shall be transferred firn the Department afpubhc Health and Environment from the Prevention, Early Detection, and Treatment Fund (PEDT Fund) and $190,350 shall be transferred from the Department of Public Health and Environment from General Fund appropriated to Cash om F e4ie m al Fmmntl Name and C OFRS Fund Nmmrnl)em Family Planning, Purchase of Services : FF: Title XIX Reappmopmialed Funds Soumce. by Depamiment amid Line Item Name: Department of Public Health and Environment, Long Bill group (10) Prevent on Services Division (B) Women s Appmoval by OIT? Yes: No: NA: v Schedule 13s horn Affected Depamtments: None. Health Planning, Purctase of Services line item Page BA-16.1
2 CHANGE REQUEST for FY BUDGET REQUEST CYCLE Department: Priority Number: Change Request Title: Health Care Policy and Financing BA-16 Implementation of Family Planning Waiver SELECT ONE (click on box): Decision Item FY Base Reduction Item FY Supplemental Request FY Budget Request Amendment FY SELECT ONE (click on box): Supplemental or Budget Request Amendment Criterion: Not a Supplemental or Budget Request Amendment An emergency A technical error which has a substantial effect on the operation of the program New data resulting in substantial changes in funding needs Unforeseen contingency such as a significant workload change Short Summary of Request: This request is to transfer $190,350 in FY and $420,660 in FY from the Department of Public Health and Environment (DPHE) to the Department as reappropriated funds. The existing source of funds in the Department of Public Health and the Environment is General Fund. This transfer would result in $1,903,500 total funds in FY and $4,206,600 total funds in FY This funding will be used to implement a Medicaid family planning waiver to serve individuals up to 200% of the federal poverty level. Transferring this funding to the Department will allow for an enhanced federal financial participation rate of 90% to fund family planning services for uninsured, low-income Coloradans who would otherwise be receiving services funded by the unmatched General Fund dollars currently appropriated to the Department of Public Health and Environment. This budget amendment meets the criteria of new data due to the Department receiving information from the Centers for Medicare and Medicaid Services (CMS) that the waiver will likely be approved prior to the end of FY Page BA-16.2
3 Background and Appropriation History: The Department of Public Health and the Environment serves about 50,000 Coloradans annually in its Family Planning Program. Services are available on a sliding scale at over 60 sites throughout the state. The Department of Public Health and Environment receives $1,229,003 in General Fund annually to support these family planning services in addition to funding received through a federal grant. 1 Of the approximately 50,000 individuals who receive these services annually, an estimated 2% fall within the current Medicaid income eligibility limit. Given that the federal government contributes nine dollars for every dollar a state allocates for Medicaid eligible family planning services, this means that only 2% of the individuals served in this program are receiving the 90% federal matching funds. In order to maximize federal funds received, a 2007 Government Efficiency and Management review for Colorado recommended that the state submit a waiver to CMS establishing a Medicaid family planning coverage program for the uninsured, low-income population in Colorado whereby a portion of the state funding currently used to fund family planning services for this population could be leveraged to obtain federal matching funds at 90%. In the 2008 Legislative Session, SB was passed allowing the Department to request a pilot waiver from CMS in order to provide family planning services to women with incomes up to 200% of the federal poverty level (FPL). The Department, in collaboration with the Department of Public Health and Environment, first submitted the waiver request to CMS in July The Centers for Medicare and Medicaid Services does not have a specific timeframe to approve or deny pilot proposals and currently the average time for approval is 18 months. The Department received a request for additional information from CMS in December The Department resubmitted the waiver with the requested information and is currently working with CMS to get the waiver approved. The Department anticipates the waiver will be approved prior to the end of FY The departments requested this waiver in order to reduce unintended pregnancy among low-income Coloradans by increasing access to effective methods of contraception and 1 The Department of Public Health and Environment s Long Bill group (10) Prevention Services Division (B) Women s Health Family Planning, Purchase of Services line item. Page BA-16.3
4 reproductive health care. According to Colorado Pregnancy Risk Assessment and Monitoring System (PRAMS) data, % of all surveyed women who gave birth in 2007 stated that the pregnancy was unintended at the time of conception. Among women whose prenatal care and delivery was covered by Medicaid, the percent of unintended births was nearly twice as high 51.7% compared to women not on Medicaid, for whom it was 29.6%. The strategy that Colorado will use to reduce unintended pregnancies will be to provide contraception to uninsured women and men age 19 through 50 whose incomes are at or below 200% FPL and who are eligible under the terms of the pilot waiver. By focusing on this group, the women served will be those who are the most likely to become pregnant unintentionally and who are the most likely to be eligible for coverage under Medicaid for medical care including prenatal care, delivery, postpartum and infant medical costs if they were to become pregnant. Among the approximately 70,800 births in Colorado in 2007, Medicaid funded about 36.5%, or 25,840 births. Of those births, over 13,300 are considered to be unintended based on PRAMS survey results. General Description of Request: The Department is requesting a transfer of $190,350 in FY and $420,660 in FY from DPHE to the Department as reappropriated funds in order to provide services through the Medicaid family planning waiver. The Department will be able to draw an enhanced federal match of 90% for a total appropriation of $1,903,500 in FY and $4,206,600 in FY According to federal requirements for pilot waivers, the family planning waiver must be budget neutral. In addition, (2), C.R.S. (2009) requires that the waiver also be cost neutral to the General Fund. The Department of Public Health and Environment receives $1,229,003 in General Fund annually to support family planning services. Based on the number of individuals anticipated to be served through the waiver, the Department 2 Colorado PRAMS is an ongoing random sample survey of Colorado mothers giving birth each year. Its results are representative of all Colorado mothers age 15 and older. Page BA-16.4
5 estimates it would require only a portion of DPHE s current General Fund appropriation, keeping the impact of the waiver General Fund neutral. The global intent of this waiver is to provide family planning and reproductive health care services to women and men who meet established criteria and who otherwise would not have medical coverage for family planning and contraceptive services. Expansion of family planning services will reduce the number of unintended pregnancies among low-income women and men who are currently unable to afford counseling, contraception and reproductive health services. Improving low-income Coloradans access to contraception and counseling will reduce the overall percentage of Colorado births funded by Medicaid. Furthermore, by allowing participants to appropriately plan and space pregnancies, the waiver should also help to reduce the low birth weight and prematurity rates that result from closely spaced births and irregular prenatal care. This, in turn, can reduce state costs related to diagnosing and treating newborn and childhood health problems and disabilities. In order to demonstrate budget neutrality to CMS, the Department estimated the number of births to be averted due to the waiver program. The Department s estimate is based on an Alan Guttmacher Institute analysis of National Survey of Family Growth data, Title X data, and Medicaid data presented in an article published in The Impact of Publicly Funded Family Planning Clinic Services on Unintended Pregnancies and Government Cost Savings provides estimates of pregnancies and births averted among women served in programs across the United States. The analysis combines data on women served, contraceptive failure rates, and comparisons between contraceptive methods used by women with and without access to publicly funded care. The report shows 108 births averted for every 1,000 women served, or approximately one birth averted for every ten women served through the program. Upon federal approval of the waiver the departments will begin implementation by conducting client outreach, provider outreach and education and begin work on the necessary IT systems changes. IT systems changes will be necessary for both the client eligibility system and the Medicaid Management Information System. Costs for changes to both systems are estimated at approximately $1,000,000. There is an anonymous donor Page BA-16.5
6 willing to donate the state share of these funds to the Department in order to make these necessary changes. Due to the timing of the systems changes, the Department anticipates the waiver will be implemented beginning January There will be a public awareness campaign in order to inform individuals who may be eligible for the waiver of this new service option. The Department of Public Health and Environment already has a network of providers to provide family planning services and the Department plans to use this same network of providers as well as the existing Medicaid provider network for the waiver services to ensure clients have adequate access. Providers will be made aware of the program, scope of services, eligibility requirements, provider and beneficiary rights and responsibilities, and billing instructions through various outreach efforts including periodic training by the Department s fiscal agent, monthly provider bulletins, specialized education, outreach materials, and both the departments websites. Consequences if Not Funded: If this request is not funded, Colorado would continue to miss out on the opportunity to receive enhanced federal funding to increase access to family planning services. There is no additional cost to the State by transferring this funding in order to serve individuals through the waiver and improving low-income Coloradans access to contraception and counseling, and reducing the overall percentage of Colorado births funded by Medicaid. Page BA-16.6
7 Calculations for Request: Summary of Request FY Total Funds General Fund Reappropriated Federal Funds Funds* Total Request $1,903,500 $0 $190,350 $1,713,150 (2) Medical Services Premiums $1,903,500 $0 $190,350 $1,713,150 Summary of Request FY Total Funds General Fund Reappropriated Federal Funds Funds* Total Request $4,206,600 $0 $420,660 $3,785,940 (2) Medical Services Premiums $4,206,600 $0 $420,660 $3,785,940 *This amount is transferred from the Department of Public Health and Environment, Long Bill group (10) Prevention Services Division (B) Women s Health Family Planning, Purchase of Services Fiscal Year Individuals Served Cost Per Individual Total Funds Reappropriated Funds 1 Federal Funds ,100 $235 $1,903,500 $190,350 $ 1,713, ,100 $246 $4,206,600 $420,660 $ 3,785,940 1 General Fund from the Department of Public Health and the Environment. 2 Assumes a 90% Federal match rate. Assumptions for Calculations: Due to the anticipated implementation date of January 2011, the Department estimates 8,100 individuals would be served over six months through the existing family planning provider network in FY The Department estimates the number of clients served would annualize to approximately 17,100 in FY These estimates are based on the Department s interpretation of information provided by the Department of Public Health and Environment (DPHE) regarding the number of individuals currently receiving family planning services and those estimated to be in need of such services. Since the data from DPHE were compounded and based on a significant number of unknown variables, the Department s caseload estimates are approximately half DPHE s. The Department will Page BA-16.7
8 work with the Department of Public Health and Environment to refine the caseload estimate and submit a FY supplemental and FY Decision Item to refine the caseload estimate. In addition, the caseload estimate for FY is based on half of an estimated 16,200 clients due to only six months of implementation from January through June To estimate the cost of serving these additional clients, the Department analyzed the services to be offered through the waiver and the current average Medicaid reimbursement for those services for a total estimated average cost of $235 per client in FY and increasing to $246 in FY Impact on Other Government Agencies: This request is to transfer a portion of the Department of Public Health and Environment s current General Fund appropriation to the Department as reappropriated funds. This request would not modify the total amount currently appropriated to the Department of Public Health and Environment. Current Appropriation to the Department of Public Health and Environment for Family Planning Services Line Item Total Funds General Fund Reappropriated Federal Funds Funds (10) Prevention Services Division (B) Women s Health Family Planning, Purchase of Services $3,434,214 $1,229,003 $25,505 $2,179,706 Cost Benefit Analysis: FY Cost Benefit Analysis Request Costs This requested transfer of $190,350 in FY is cost neutral to the State. The request does not require General Fund. Benefits Under this request, $190,350 currently appropriated to DPHE becomes $1,903,500 total funds for services for 8,100 individuals. Page BA-16.8
9 FY Cost Benefit Analysis Consequences if not Funded Costs Benefits $190,350 in services and 2,045 persons served. $190,350 in services and 2,045 persons served. FY Cost Benefit Analysis Request Costs This requested transfer of $420,660 in FY is cost neutral to the State. The request does not require General Fund. Benefits Under this request, $420,660 currently appropriated to DPHE becomes $4,206,600 total funds for services for 17,100 individuals. Consequences if not Funded $420,660 in services and 4,519 persons served. $420,660 in services and 4,519 persons served. Implementation Schedule: Task Waiver or State Plan Amendment Written July 2008 Waiver or State Plan Amendment Approved April 2010 Begin Provider Outreach and Public Awareness Campaign October 2010 System Modifications Completed January 2011 Rules Effective January 2011 Start-Up Date January 2011 Month/Year Statutory and Federal Authority: , C.R.S. (2009) Family planning pilot program - rules - federal waiver repeal (1) There is hereby established a family planning pilot program for the provision of family planning services to categorically eligible individuals who are at or below a percentage of the federal poverty level established pursuant to the federal waiver sought pursuant to subsection (2) of this section. The state board shall promulgate rules setting forth the family planning services to be provided under the family planning pilot program Page BA-16.9
10 Performance Measures: Allowing the Department to receive funds from the Department of Public Health and Environment for the implementation and administration of the family planning waiver by using an enhanced federal financial participation rate, would assist the Department in achieving its following objective: Assure delivery of appropriate, high quality health care in the most cost-effective manner possible. Design programs that result in improved health status for clients served and improve health outcomes. Expand and preserve health care services through the purchase of services in the most cost-effective manner possible. Page BA-16.10
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